2014 Jeep Grand Cherokee Laredo on 2040-cars

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FCA to invest $4.5B for new Detroit plant, expanded production at current facilities

We expected some shifts in manufacturing plans as Fiat Chrysler plans to begin electrifying its Jeep brand, but this news bodes well for Michigan. FCA announced today that it would spend $4.5 billion to expand production in the state, including building a new assembly plant in Detroit and increasing capacity at five other facilities in the state. The plan, which FCA says will create nearly 6,500 new jobs, will help to meet increasing demand for Ram and Jeep products, and to electrify Jeep models. $1.6 billion will be set aside to transform the Mack Avenue Engine Complex into a site to build the next generation of Jeep Grand Cherokee, as well as an unspecified, new three-row Jeep model. FCA says this part of the plan will create 3,850 new jobs. FCA is increasing its investment in the Warren Truck plant to $1.5 billion in order to continue building the Ram 1500 Classic, as well as the new Jeep Wagoneer and Grand Wagoneer, creating 1,400 new jobs. FCA says that the new Ram 1500 Heavy Duty will still be built in Saltillo, Mexico. At FCA's Jefferson North facility, the automaker will invest $900 million to upgrade the plant. This site will continue to build the Dodge Durango, as well help build the next Jeep Grand Cherokee. FCA expects this to create 1,100 new jobs. As Jeep plans to electrify models in its SUV lineup, each of the above plants will produce plug-in hybrid versions of the Jeep models produced there, "with flexibility to build fully battery-electric models in the future," the company said in its announcement. "Three years ago, FCA set a course to grow our profitability based on the strength of the Jeep and Ram brands by realigning our U.S. manufacturing operations," said FCA CEO Mike Manley, referring in part to earlier investments in Illinois, Ohio and Michigan. "Today's announcement represents the next step in that strategy," Manley continued. "It allows Jeep to enter two white space segments that offer significant margin opportunities and will enable new electrified Jeep products, including at least four plug-in hybrid vehicles and the flexibility to produce fully battery-electric vehicles." Other investments include $119 million to move production of the 3.0-, 3.2- and 3.6-liter Pentastar engines from Mack I to the Dundee Engine Plant, and $400 million for increased capacity and 80 new jobs at the Sterling and Warren stamping plants. This comes at a time when FCA's U.S.

FCA's Pentastar V6 gets more power, efficiency for 2016

Already a vital member of FCA's powertrain lineup, the 3.6-liter Pentastar V6 is receiving major efficiency improvements for 2016. Thanks to a massive amount of new tech attached to the mill, fuel economy is up six percent, and torque below 3,000 rpm jumps nearly 15 percent. The updates arrive first in the 2016 Jeep Grand Cherokee, but they should proliferate to other models eventually. At least in the Grand Cherokee, the tweaks push power up five horsepower to 295 ponies. FCA's engineers went through the Pentastar from top to bottom to eke out as much efficiency as possible. For example, there's now a two-speed variable-valve lift system that can run in low- or high-lift modes. This upgrade is responsible for 2.7-percent better economy, the company claims. A new intake manifold with longer runners and updated variable-valve times also helps boost the torque output. Further improvements come from pushing the compression ratio to 11.3:1, from 10.2:1 before. Perhaps most impressive is that despite all of the innovations, the latest Pentastar actually weighs four pounds less than the current version. Beyond the Pentastar improvements, all of the FCA US gasoline engines, except for the Viper's 8.4-liter V10, will be E15-compatible for 2016. The company says that it wants to be ready for the higher ethanol content fuel's greater use in the near future.

Chrysler nets $1.6B income in Q4, Fiat profit up 5%

Chrysler announced its 2013 financial results today and unveiled its new name and decidedly bank-like logo. Amid the announcement, Chrysler posted big gains in income, while Fiat didn't perform to analysts' expectations.
For 2013, Chrysler had revenue of $72.1 billion, up 10 percent from 2012. Net income reached $2.8 billion, a 65-percent increase. It was the company's third straight year of annual profits.
In terms of unit sales, Chrysler sold 2.4 million cars worldwide in 2013, up 9 percent. According to Automotive News, 1.8 million of those vehicles were sold in the US, a 14-percent increase. The sales growth boosted Chrysler's US market share to 11.4 percent, up 0.2 percent.